Structured Finance for Commercial Real Estate Transactions: Close Deals When Traditional Debt Stalls
1 Overview
Rising rates, tighter bank capital ratios and “office apocalypse” headlines have slammed the brakes on vanilla property loans. Yet deals still pencil when the structure matches the asset’s cash profile. That is where structured finance steps up. We carve the income stream, isolate risks and place each slice with money that gets it, so acquisitions, refinancing and equity recaps move forward instead of languishing in credit-committee purgatory.
2 Why Structured Finance in CRE?
- Bridge-to-stabilisation: Cover tenant-improvement outlays and carry costs until the rent roll seasons.
- Take-out CMBS: Replace short-term bridge debt with fixed-rate notes once occupancy hits threshold.
- Note-on-note leverage: Unlock sponsor equity trapped in a senior loan without triggering defeasance.
- Sale-leaseback securitisation: Monetise corporate occupiers’ rent payments at investment-grade pricing.
3 Our Toolbox
| Instrument |
Use Case |
Advance Rate / LTV |
Typical Tenor |
| Transitional Bridge Notes |
Value-add office, hospitality repositioning |
65 - 75 % “as-is” value |
18-36 months interest-only |
| Single-Asset Single-Borrower CMBS |
Stabilised trophy assets |
55 - 65 % appraised value |
5-10 years amortising |
| Whole-Loan Re-Tranche |
Release mezz equity on core portfolios |
Up to 80 % blended LTV |
3-5 years |
| Ground-Lease Wrap |
Reduce cost of capital on new builds |
95 % of fee-simple value split |
50-99 year ground lease |
4 Deal Timeline
Day 1-7:
Asset data room and rent roll drop. We mark rough proceeds, pricing and fees.
Day 8-30:
Structure modelling, third-party valuations, rating-agency pre-sound if needed.
Day 31-55:
Term-sheet auction among banks, debt funds and bond investors. Sponsor selects the best stack.
Day 56-75:
Docs close, cash funds. Cap-ex begins or old loan retires.
Light industrial parks close faster than mixed-use towers—plan for longer diligence on complex assets.
5 Case Snapshots
- Dallas suburban office park:
USD 92 m bridge-to-stabilisation note at SOFR + 475 bps, 72 % “as-is” LTV, three-year term with extension options.
- Mid-Atlantic multifamily portfolio:
USD 210 m SASB CMBS, ten-year fixed 5.3 %, 62 % LTV, cash-out enabled sponsor to acquire a new pipeline asset.
- Chicago data-center ground-lease:
Split-structure yielded 110 bps savings versus straight senior mortgage, pushed developer IRR above 18 %.
6 Investor Comfort Measures
- Independent third-party appraisal and engineering reports baked into closing conditions.
- Cash-management waterfall with lockbox sweeps once DSCR trips below preset trigger.
- Monthly performance dashboards tracking occupancy, net effective rent and leasing pipeline.
- Step-in rights for lenders if budget overruns breach cap-ex covenants.
7 Why Financely
From 2020-2025 we arranged USD 4.6 billion in structured real-estate debt across office, logistics, hospitality and specialty use. We walked away from another USD 1.1 billion when value could not be pinned down, which keeps our close rate north of 80 %. Expect direct talk, investor reach and a timeline that holds.
8 Get Started
Working on a commercial real-estate transaction that needs more than a plain senior mortgage? Send the rent roll, T-12 financials and cap-ex plan. We will respond inside forty-eight hours with a clear go-or-no-go and indicative pricing.
Stop letting bank-committee delays kill good deals. Upload your data room and let Financely layer the structured debt your project deserves.
Book Your CRE Finance Review
Figures and timelines reflect Financely Group real-estate desk transactions 2020-2025. Funding remains subject to due diligence, investor appetite and market conditions.